Pertamina sells $1billion of global bond

State-owned oil and gas firm PT Pertamina (persero) announced on Tuesday that it has sold the first global bond this year in the amount of US$1 billion.

Settlement of the first global bond was held Monday night (23/5).

The bond which was 7 times oversubscribed caries a coupon rate of 5.25%, yield at 5.5% and 10 years of maturity. Pricing was held in New York on May 06. Joint lead managers in this transaction were Citi Group, Credit Suisse and HSBC. The bond will be listed in Singapore stock exchange (SGX).

Proceeds from the bond will be used to meet the company's capital expenditure plan as part of its effort to realize its 2011 strategy "aggressive upstream and profitable downstream".

Pertamina's general shareholders meeting has approved a total capital expenditure of Rp 37.1 trillion (1US$ = Rp 8,560) for this year, 76.4 percent of which or Rp 28.4 trillion for upstream sector, and the remaining 23.6% remain for downstream sector. (godang)